The RAM crunch could kill products and even entire companies, memory exec admits

2026-02-19 · Source: The Verge · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cloud Computing & IT Infrastructure, Emerging Technologies & Innovation · Depth: Fundamental Awareness, quick

Summary

Phison CEO Pua Khein-Seng, a prominent controller chip maker for SSDs, warns that the ongoing RAM shortage could force companies to reduce product lines or even cease operations by the second half of 2026 if they cannot secure sufficient components. This assessment, made during a televised interview with Ningguan Chen of Next TV, highlights a critical supply chain issue. The shortage is primarily driven by AI data centers consuming a vast majority of the global memory supply, leading to RAM prices tripling, quadrupling, or even sextupling in recent months. The market is highly concentrated, with only three companies controlling 93 percent of the global DRAM supply, and these manufacturers are hesitant to rapidly expand production capacity. This situation is expected to impact nearly all computing sectors, potentially delaying product releases from major players like Nvidia and Apple, and encouraging consumers to repair rather than replace broken electronics.

Key takeaway

For CTOs and VPs of Engineering managing product roadmaps, the escalating RAM shortage necessitates immediate strategic planning. Your teams should audit current and projected memory requirements against potential supply constraints through 2026. Consider diversifying component suppliers, exploring alternative memory technologies, or redesigning products to optimize RAM usage to mitigate the risk of production halts or product line cancellations.

Key insights

AI data center demand is causing a severe RAM shortage, threatening product lines and company survival by 2026.

Principles

• Supply chain concentration creates systemic risk.
• Rapid demand shifts can destabilize markets.

In practice

• Prioritize securing long-term RAM supply contracts.
• Explore product redesigns to reduce RAM dependency.

Topics

• RAM Shortage
• AI Data Centers
• Semiconductor Supply Chain
• DRAM Market
• Product Manufacturing

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Tech Journalist, Executive, AI Product Manager

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Verge.